In his remarks, Prof. Djiwandono explained how President Donald Trump’s second-term tariff policies—marked by abrupt and often punitive tariff increases against major trade partners including China, the EU, Canada, Mexico, and even Indonesia—have reignited a global trade war. He recounted how the tariffs, implemented under the guise of “America First” and “Make America Great Again” rhetorics, ignored historical lessons from past protectionist moves such as the infamous Smoot-Hawley Tariff Act, which contributed to the Great Depression of the 1930s.

Rather than mere academic discourse, Prof. Djiwandono’s speech carried a palpable urgency. He criticized the “haphazard” nature of the tariffs, describing them as “self-inflicting wounds” on the U.S. economy, echoing sentiments expressed by leading economists including Janet Yellen, Jeffrey Sachs, and Larry Summers. The retaliatory measures from affected countries, including Indonesia, Canada, Mexico, and China, have compounded the problem, straining supply chains and diminishing global growth prospects.

Yet, amid this uncertainty, Prof. Djiwandono lauded Indonesia’s proactive stance. He highlighted how the government, under President Prabowo, swiftly engaged in diplomatic negotiations with U.S. trade authorities, sending a high-level delegation to Washington D.C. Their early engagement and constructive dialogue, bolstered by personal connections such as Thomas Djiwandono and U.S. Commerce Secretary Howard Lutnick’s shared alma mater, Haverford College, exemplified Indonesia’s strategic agility.